The Slovenia Times

Over 80% of Cash Flow in Tourism Spent on Loan Repayment


Vesenjak also examined ownership structures in tourism companies in 2013. He said that 19 hospitality companies controlled 85% of capital and 77% of assets in Slovenia's entire tourism sector. Moreover, these companies generate 83% of revenues and employ 80% of all people working in the sector.

He said that the high share of state-owned tourism companies was "an anomaly in Slovenia's tourism sector". "We must always keep in mind that entrepreneurial the basis for tourism development."

By increasing revenues strategically, the sector could create 15,000 jobs and contribute additional EUR 280m to the budget, said Vesenjak.

He added that Slovenia had exceptional characteristics for tourism development; however, these were not exploited well enough. Vesenjak believes that Slovenia could increase the number of overnight stays threefold and double its tourism capacities.

The results of Vesenjak's analysis show that 65% of overnight stays are generated by hotels and similar establishments. He said that capacities have increased by 27% in the past six years while occupancy levels dropped by 12%.

Between 2007 and 2012 the number of overnight stays increased by 11.7% and revenues went up 15%; taking inflation into account the increase was however only at 1.4%. Vesenjak said that hotels in Slovenia generated EUR 500m in annual revenues.

The cost of loans in tourism increased 260% in nominal terms and 216% in real terms, undermining the positive effects of saving and labour cost cutting, said Vesenjak.


More from Nekategorizirano